MHIC Lien Law

Question 1

Under Maryland law, what is the maximum time a general contractor has to file a mechanic's lien after the last day work was performed on a project?

Accepted Answer

180 days

Answer

Maryland's mechanic's lien law gives general contractors 180 days from the last day work was performed to file a lien claim in circuit court. Missing this deadline extinguishes the lien right entirely.

Question 2

A subcontractor in Maryland wishes to preserve their right to file a mechanic's lien. Within how many days of last performing work must they provide written notice to the property owner?

Accepted Answer

120 days

Answer

Under Maryland law, a subcontractor must give the property owner written notice within 120 days of the last date work was performed in order to preserve lien rights — a shorter window than the general contractor's 180-day filing deadline.

Question 3

Which of the following best describes the purpose of a mechanic's lien in Maryland?

Accepted Answer

To secure payment for labor and materials by placing a legal claim against the property

Answer

A mechanic's lien gives contractors and suppliers a security interest in the property on which they performed work or supplied materials, similar to how a mortgage encumbers a property — it does not grant ownership but creates leverage to compel payment.

Question 4

A property owner in Maryland wants to sell their home while a mechanic's lien is pending. Which action can the owner take to discharge the lien without immediately paying the full claimed amount?

Accepted Answer

Post a bond or cash deposit with the court equal to 1.5 times the lien amount

Answer

Under Maryland law, a property owner can discharge a mechanic's lien by filing a bond or depositing cash with the court equal to 1.5 times the lien amount. This frees the property for sale while the underlying payment dispute is resolved.

Question 5

Which of the following is NOT a valid basis for filing a mechanic's lien in Maryland?

Accepted Answer

Lost profits from a contract that was cancelled before any work began

Answer

Maryland mechanic's liens can only be filed for labor actually performed or materials actually furnished and incorporated into the property. Lost profits on a cancelled contract where no work was performed do not create lien rights.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Lien Law